“Take No Prisoners: A No-Holds-Barred Approach to Corporate Excellence”

by Marvin A. Davis;

Amacom, New York, New York; 2007; 230 pages; $24.95

 

The leaders of many American companies, regardless of size, have begun to experience an unfamiliar sinking feeling. All private sectors of the economy, from agribusiness to real estate, are discovering that highly touted “solutions,” such as computer technologies, international free trade agreements, communications technology, and biotechnology, aren’t solving much of anything.

Some of the nation’s largest and most sophisticated companies are shifting their operational headquarters overseas to be nearer their workforces and bankers. One of the results is the fall of the dollar by nearly a third of its value only five years ago.

Author Davis is best known for his book “Turnaround,” which is a virtual manual on making companies profitable once more, believes it is time that corporate leadership woke up to reality. Thoughts such as “complacency is not a problem in my company,” “fraud is not a problem in my company,” and “my bank loves me” are quite likely to be self-delusional. Davis notes that there are 12 deadly failures of management:

“1. Failure to recognize changing market conditions and act on them.

“2. Failure to resolve internal conflicts and resistance.

“3. Arrogance.

“4. Overspending during good times.

“5. Failure to continually rationalize the organization.

“6. Failure to act on substandard performance.

“7. Inability to think ‘outside the box.’

“8. Failure to delegate.

“9. Failure to define market strategies.

“10. Failure to demand implementation of marketing plans.

“11. Failure to tie compensation to corporate performance.

“12. Failure to plan for the cash needs of the business.”

Most of the book is taken up with ways of preventing these failures based on combination of ideas that have proven workable during extended periods of time, as well as achieving profitability goals by “outside-the-box” solutions.

One example of this is Davis’ recommendation of a thorough evaluation of customers’ value to the company. As he puts it, “some customers should be fired.” The author isn’t sanguine about such a move. He states:

“The hardest thing a company can do is fire a customer. There are reasons for doing this beside the obvious economic ones. These can include the following six things:

“1. Overly demanding service requirements.

“2. Consistent slow pay and collection problems.

“3. Exaggerated warranty demands.

“4. Continuing threats of legal actions.

“5. Quality requirements beyond reasonableness, coupled with high returns.

“6. Abusive or dishonest relationship.

Well written and highly readable, Davis has as much to offer the men and women who lead small corporations as well as those who guide corporate giants.

After the first two chapters, much as he did in his book “Turnaround,” the author offers a manual that can be easily used in multiple situations. Even so, it can be read cover to cover to determine where your own starting point should be when resolving the issues your company faces.

Among the later chapters of the book is one that is totally devoted to banking. Few books on dealing with turnaround problems deal with lending issues and the importance of corporate officer’s relationship with their company’s bankers. Davis addresses these issues in a straightforward way, pointing out that “your banker is in reality… a vendor who sells you money,” and “almost every corporate turnaround effort must include renegotiating…the lending arrangement.”

A well-earmarked copy of “Take No Prisoners” should be on the desk of senior corporate manager as we enter the trying times ahead.

 

            -- Henry Holtzman